Car insurance regulators in the State of Michigan, United States of America, are rigorous as far as following these laws are concerned. Mandatorily, all vehicle owners need to have a valid car insurance cover (of appropriate value) to be driving a vehicle legally. People who drive without the same are liable to be punished and may get fined severely. We will discuss what problems a defaulting car owner might face in the subsequent sections. But first, let us look at what requirements are posed by the government.

Fundamentals Of Michigan Car Insurance Agencies

Buying a car in Michigan would mean having to invest in a car insurance policy too. As opposed to popular belief, it does not always mean paying through the nose. There is always an option to buy now pay later car insurance coverage; the only constraint is understanding the concept and knowing where to look. To start out with, let us discuss things from an insurance company’s point of view.

Car insurance agencies across the world have been known to look at things objectively. They adopt various measures that are indicators of the risks involved in insuring an applicant. According to the contract terms, they would be liable to surrender the maximum policy amount or the total costs of damages (whichever is lower) to the policyholder filing who files for a claim after meeting with an accident. As a result, it would, of course, be in their interest to sell insurance only to those who pose a lesser risk. It would be right to assume here that the cover specifications for different applicants may broadly vary based on these indicators.

Michigan Auto Insurance Requirements

Michigan car owners are required to own at least a minimum insurance amount. This has been set in the following manner:

  • $25,000 – To cover injuries or death of a single person in an at-fault accident
  • $ 50,000 – To cover the injuries or deaths of all people in a fault accident
  • $ 20,000 – To cover damage to the other party’s property in a faulty accident.

Having a cover of this amount is enough to satisfy the government but may not always be enough. Corporate sources suggest having a minimum coverage of $100,000/$300,000/$100,000 as a complete security measure from any minor or major accident. Depending on affordability, try and buy a coverage that would take care of most expenses, if not all.

What if you drive without insurance in Michigan?

People in Michigan without car insurance can get fined an amount of $500.However, people caught driving, while registrations have been suspended due to lack of insurance coverage, can be fined up to $200-$500. The government tries to achieve this by imposing such heavy fines to ensure that people think twice before ignoring the law. Further, the fines are way higher as compared to paying the premiums, and as such, it would be better for car owners to buy a cover than to break the law and put the financial security of others at risk.

When asked for by a law enforcer, the driver must show proof of the cover. This essentially means that you would have to keep a copy of the policy in the car at all times to produce the same when demanded. To make sure that everyone does have a cover, the motor vehicles authority of the state sends out questionnaires to random car owners. Owners then have to respond to the questionnaire. Not doing so may cause suspension of the driver’s driving license. Law enforcers are also authorized to suspend the vehicle’s registration if the driver is found to be violating traffic norms and not carrying a cover either.

Following this, the owner would be required to buy a cover as soon as possible and submit a copy of the same with the authorities. The suspension gets revoked in one month post submission of the document. Getting caught the second time would further increase the suspension period to 4 months, and those who are found to default even then would be made to appear before the court.

These laws are stringent (probably one of the strictest worldwide) but have been made for the benefit of no one else but the state vehicle owners. It is always better to follow them and remain safe than not to and remain at risk.

What factors do insurers fundamentally take into account?

Two prominent risk indicators that deserve mention are age and marital status. Applicants under the age of 25 years are classified under the bracket of high risk. Being on the high-risk list means getting a cover at a much higher price; however, a married person of the same age group may enjoy better rates (marriages tend to help an individual mature and look beyond irresponsibility and recklessness). There is also a possibility that instead of lowering the costs, the company grants coverage worth more in the market for the same rate. Both ways work in favor of the applicant. Nevertheless, if the company feels that the applicant may still be reckless, they have the right not to grant discounts.

How to find the right auto insurer in Michigan?

Buying cover from a reputed car insurance company in Hanover is better in terms of service and security. However, the applicant may end up paying hundreds of dollars as additional as what he would have paid to a regular company giving the same offer. For this reason, it is always advised to buy cover from the right company. The question is – “which is the right company?”

Companies divide people into different groups and target a particular group of people at one time. Applicants who belong to the primary target group tend to get more discounts than those others. Keeping this in mind, it would be best to ask for quotes from different agencies and find out which offers the best price. The chances of seeing contrasting quotes are always high.

Having an internet connection at home is enough to do everything. There is no need to talk to an agent and ask for help unless absolutely necessary. Websites have been made keeping in mind the computer friendliness of all, and navigating through it is very easy. Various sites including Direct Auto Insurance also contain comparative analysis by many agencies, making things a lot more convenient. If given time, finding a cheap car insurance cover in Michigan is not hard at all.